Corporate Social Responsibility Of Globalization Essay

During the last few decades, globalization has grown to be a leading concept in business. Globalization affects the economy in its different segments, the business society and the environment in total. A set of dynamic processes, globalization is transforming the world into only globality; a nature of intense economic, political, social and cultural interconnections that hinder borders of all sorts of trade. All corporations have been affected by the changes caused by globalization. It leads to increased competition. Business’s corporate power tends to decrease; mainly their influence on the government, the economy and society. And based on the iron law of responsibility, to operate in the long run, corporations need to use their power in a way that society considers responsible. With globalization and high competition, businesses are put under pressure to succeed this way,

With globalization, developed and developing countries having encountered critical social issues, such as increased income inequality and the exploitation of labor. Corporate social responsibility, however, is considered a force to solve the negative consequences of globalization. During the process of globalization, corporations maximize their efficiency through the worldwide allocation of resources. Here, they encounter fierce competition. The competition does not only create more value to the corporation’s consumers; it makes business executive’s reconsider their concerns of social and ethical issues and their whole decision-making process. Furthermore, with globalization, shareholders and investors focus on the implementation of their strategies on social communities. They look for sustainable businesses that will produce their benefits and profits in the long run during the stress faced by globalization. Therefore, when multinationals employ international trade and business, they need parallel investment in corporate social